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					Appendix

  42                       NSP SECOND DEED OF TRUST


Return To:                             Tax Map Reference #:

                                       RPC/Parcel ID #


Prepared By :
______________________________________________________________________________
                       [Space above Line for Recording Data]

                                       Address

                                       City, State, Zip code

PURSUANT TO SECTION 55-58.3.D OF THE VIRGINIA CODE, THIS DEED OF
TRUST SHALL NOT, WITHOUT THE CONSENT OF THE SECURED PARTY
HEREUNDER, BE SUBORDINATED UPON THE REFINANCE OF ANY PRIOR
MORTGAGE.


                                Second Deed of Trust
             Virginia Department of Housing and Community Development
                      Neighborhood Stabilization Program Funds


         THIS DEED OF TRUST dated this _______ day of ____________________, _____,
is given by ____________________________________________________________________
_____________________________________________________________________________
(herein referred to collectively as “Grantor”) to Denise H. Ambrose, Associate Director of the
Virginia Department of Housing and Community Development, as trustee (herein referred to as
the “Trustee”) whose business address is 600 East Main Street, Suite 300, Richmond, Virginia
23219 for the benefit of the VIRGINIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT, 600 East Main Street, Suite 300, Richmond, Virginia 23219 as beneficiary.
Whenever herein used, the singular form shall include plural and the plural shall include the
singular, as may be appropriate in the circumstances.

        NOW THEREFORE in consideration of the sum of $10.00 cash in hand paid at
settlement, the receipt of which is hereby acknowledged, the Grantor does bargain, sell, grant,
and convey with the usual English Covenants and General Warranty of Title the following
described property unto said Trustee, to wit:




Revised 06/01/2011                                        Appendix 42: NSP Second Deed of Trust
                                                                                              1
                                     SEE SCHEDULE “A”
              (Property Description, to include Legal address and Street address)



        IN TRUST NEVERTHELESSS, to secure the payment of the Grantor’s obligations and
 indebtedness to the VIRGINIA DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT, including all extensions, renewals or additional advancements thereupon,
which indebtedness shall be evidenced by one or more promissory notes which refer to this Deed
of Trust, including but not limited to the following described obligations, to wit:




Article 1                Affordable Housing Covenants

The sale and use of each NSP-assisted Affordable Housing Unit (“NSP-assisted Unit”) subject to
this Deed of Trust is governed by regulations governing controls on affordability, which are
governed by the requirements of the HOME Program 24 CFR Part 92, et seq. (“HOME
Regulations”).     Consistent with the HOME Regulations, the following covenants (the
“Covenants”) shall run with the land, for each respective purchaser of the NSP-assisted
Affordable Housing Unit referenced herein, for the period of time commencing upon the earlier
of (a) the date hereof or (b) the prior commencement of the “Affordability Period”, as that term is
defined in the HOME Regulations, and terminating upon the expiration of the Affordability
Period as provided in those same Regulations.

      A. The Department of Housing And Community Development ( The “Department”) and the
         Commonwealth, collectively appoint as an administrative agent : (Name of the issuing
         NSP Local Administrator)

         _______________________________________________________________________,.


B        The Borrower(s) may prepay the whole unpaid balance of this indebtedness at any time
         without penalty.


C..       No refinancing, equity loan, secured letter of credit, or any other mortgage obligation or
         other debt (collectively, “Debt”) secured by the NSP-assisted Unit, may be incurred
         except as approved in advance and in writing by the Department in accordance with the
         Neighborhood Stabilization Program. At no time shall the Local Administrator approve
         any such debt. The original amount of NSP funds received at the initial purchase of
         the house will be due to DHCD and payable in full to the Treasurer of Virginia if
         there is a refinance or sale of the property during the affordability period, subject to
         availability of funds at settlement after the first mortgage and closing costs have
         been paid.




Revised 06/01/2011                                           Appendix 42: NSP Second Deed of Trust
                                                                                                 2
D.      The owner of the NSP-assisted Unit shall at all times maintain the Affordable Unit as his
        or her principal place of residence.

E.      At no time shall the owner of the NSP-assisted Unit lease or rent the Affordable Unit to
        any person or persons.

F.      If the NSP-assisted Unit is a two-family home, the owner shall lease the rental unit only
        to income-certified low-income households approved in writing by the Local
        Administrator, with approval from the Department, and shall charge rent no greater than
        the maximum permitted rent as determined by the fair market value for the city or county
        that the property is located; and shall submit for written approval of the Local
        Administrator and the Department copies of all proposed leases prior to having them
        signed by any proposed tenant.

G.        No improvements may be made to the NSP-assisted Unit that would affect its bedroom
        configuration. Borrower shall not permit the Property or any part thereof to be removed,
        demolished, or materially altered without the Administrative Agent’s prior written
        consent. Borrower shall maintain the Property, and every portion thereof, in good repair
        and condition, except for reasonable wear and tear, and shall at Administrative Agent’s
        election restore, replace, or rebuild the Property or any part thereof now or hereafter
        damaged or destroyed by any casualty (whether or not insured against or insurable) or
        affected by any condemnation. Borrower shall not commit or suffer any waste or strip of
        the Property

H.     This Deed of Trust, in the principal sum of the NSP DEFERRED PAYMENT LOAN in
       the amount of $ ______________________, with no interest as agreed there upon, shall be
       forgiven so long as the Grantor occupies the property as their primary residence over the
       entire Period of Affordability assigned to the said loan.

I.      The NSP-assisted Units are subject to a _________ year affordability control period that
        commenced on the date of first conveyance of title, which is ________________
        ______, of this NSP-assisted Unit governed by this Deed of Trust to a certified low-,
        moderate- or middle-income purchaser who has executed the documents required by the
        Neighborhood Stabilization Program.




VHDA Financing Provision


J.    The provisions of this paragraph J shall apply if (i) the Virginia Housing Development
      Authority (“VHDA”) has made a mortgage loan (the “VHDA Loan”) to the Grantor
      secured by the lien of a deed of trust (the “VHDA Deed of Trust”) recorded prior hereto to
      finance the purchase of the NSP-assisted Unit in conjunction with the NSP Deferred
      Payment Loan and (ii) the VHDA Loan is insured by the Federal Housing Administration
      (“FHA”). The regulations of FHA set forth in 24 CFR Section 203.41 and FHA Mortgagee
      Letter 94-2 impose requirements (the “FHA Requirements”) with respect to legal

Revised 06/01/2011                                         Appendix 42: NSP Second Deed of Trust
                                                                                               3
      restrictions on the conveyance and occupancy of properties that secure mortgage loans
      insured by the FHA. Notwithstanding any provisions herein to the contrary, the following
      provisions shall be binding on the Grantor and the Department in order to have the
      covenants and restrictions herein comply with the FHA Requirements.

        1. Upon conveyance of the NSP-assisted Unit by any deed in lieu of foreclosure of the
        VHDA Deed of Trust or upon any assignment of the VHDA Loan to FHA, the above
        covenants and restrictions in this Article 1 shall automatically and permanently terminate,
        and upon receipt of notice from VHDA of any such deed or assignment, the Department
        shall immediately take all action necessary to record the release of this Deed of Trust in
        the land records of the jurisdiction in which the NSP-assisted Unit is located.

        2. During the time that the VHDA Loan is outstanding, the Department shall approve
        any transfer of the NSP-assisted Unit to certified income eligible households (provided
        that in no event shall the income of such household exceed 120% of area median income)
        under the HOME Regulations and the Neighborhood Stabilization Program for a
        purchase price that does not exceed the greater of (i) the original purchase price paid by
        the Grantor, the Grantor’s reasonable costs of sale (including any sales commission), and
        the reasonable costs of capital improvements to the NSP-assisted Unit made by the
        Grantor or (ii) the Maximum Sales Price.

        3. During the time that the VHDA Loan is outstanding, DHCD shall require the
        Mortgagor to occupy the Property as the Mortgagor’s principal residence, as permitted by
        24 CFR203.41(d)(5).


        4. During the time that the VHDA Loan is outstanding, (i) the Department may exercise
        its right to foreclose under this Deed of Trust only for violations of the restrictions on
        conveyance and occupancy in this Article 1, (ii) the Department shall not seek to enforce
        any such covenant or restriction on conveyance or occupancy by subjecting the Grantor
        to contractual liability (as described in the FHA Requirements) other than requiring
        repayment of the NSP Deferred Payment Loan, and (iii) all other covenants and
        restrictions in this Article 1 (including, without limitation, the covenants and restrictions
        relating to additional Debt secured by the NSP-assisted Unit or the leasing of any rental
        unit in the NSP-assisted Unit) shall not apply and may not be enforced by the
        Department.

        5. The provisions of this section J and the FHA Requirements shall control over any
        inconsistent provisions herein. The provisions of this section J are for the benefit of, and
        shall be enforceable by, VHDA. The provisions of this Article 1 shall not be amended or
        waived without the prior written consent of VHDA.




Revised 06/01/2011                                            Appendix 42: NSP Second Deed of Trust
                                                                                                  4
Article 2
Remedies for Breach of Affordable Housing Covenants

A breach of the Covenants will cause irreparable harm to the Commonwealth and to the public, in
light of the public policies set forth in the National Affordable Housing Act of 1990, and the
obligation for the provision of low and moderate-income housing receiving federal HOME
assistance in accordance with 24 CFR Part 92. Accordingly:

A.      In the event of a threatened breach of any of the Covenants by the Grantor, or any
        successor in interest or other owner of the NSP-assisted Unit, the Commonwealth of
        Virginia shall have all remedies provided at law or equity, including the right to seek
        injunctive relief or specific performance.

B.     Upon the occurrence of a breach of any Covenants by the Grantor, or any successor in
       interest or other owner of the Property, the Commonwealth of Virginia shall have all
       remedies provided at law or equity including but not limited to forfeiture, foreclosure,
       acceleration of all sums due under any mortgage, recouping of any funds from a sale in
       violation of the Covenants, diverting of rent proceeds from illegal rentals, injunctive
       relief to prevent further violation of said Covenants, or entry on the premises.

The Grantor hereby consents to foreclosure by the Trustee named herein in the event of a
Default, notwithstanding that the Trustee may have supplied legal advice to or
represented the Grantor in this transaction. For services as Trustee in the event of a sale
hereunder, the Trustee shall be entitled to compensation in the amount equal to FIVE
PERCENT (5%) of the gross amount realized at any such sale, together with any costs
incurred by the Trustee in effectuating said sale, which shall be deducted from the
proceeds of the sale.

         ADVERTISEMENT REQUIRED: Publication of notices of sale once a week for two
successive weeks in any newspaper of general circulation or published in the City or County
where the property is located. Said sale may be held not less than eight (8) days following the
first advertisement and not more than thirty (30) days following the last advertisement.

        INSURANCE REQUIRED: THE GRANTOR COVENANTS to purchase and maintain
fire and casualty insurance on the improvements situated upon the property in the amount of not
less than the full amount of the obligations hereby secured, the policies of which shall bear loss
payable clauses to said Trustee or to the other holders of the obligations for the future securing of
said obligations.

         THE GRANTOR FURTHER COVENANTS to promptly pay, when due, all taxes,
levies, and assessments upon the property conveyed.




Revised 06/01/2011                                           Appendix 42: NSP Second Deed of Trust
                                                                                                 5
       SUBSTITION OF TRUSTEE IS PERMITTED at the discretion of the beneficiary for any
reason whatsoever, by an instrument in writing, duly executed, acknowledged, and recorded
wherever this Deed of Trust is recorded. Any substitute Trustee hereafter appointed shall
thereupon become vested with, and succeed to, all the title, power, and duties hereby conferred
upon the Trustee named herein, the same as if the substitute Trustee has been named the original
Trustee by this instrument.


         THIS COVENANT IS MADE under and subject to the provisions of Sections 55-59, 55-
59.1 through 55-59.4 inclusive, and 55-60 of the Code of Virginia’s (1950) as amended, and
unless this Deed of Trust states otherwise, it shall be construed to impose and confer upon the
parties hereto and the beneficiaries hereunder all the duties, rights, and obligations prescribed in
said Sections 55-59 through 55-60, inclusive. And in short form, as said sections provided,
Grantor and Trustee further agree as follows:

1. Exemptions waived

2. Renewal, extensions or reinstatement permitted

3. Right of anticipation reserved, as set forth in the obligations secured

4. Subject to all upon default

5. Any Trustee may act.




Revised 06/01/2011                                            Appendix 42: NSP Second Deed of Trust
                                                                                                  6
        THE DEBT(S) SECURED HEREBY ARE SUBJECT TO CALL IN FULL OR PART

THE TERMS THEREOF BEING MODIFIED IN THE EVENT OF ANY SALE, TRANSFER,

GIFT, OR CONVEYANCE OR ANY INTEREST IN THE PROPERTY HEREBY SECURED,

OR ANY PORTION THEREOF.




WITNESSETH the following signatures and seals this day and year first above written,

____________________________________           ________________________________
             (Grantor)                                      (Grantor)

State of ________________________
City/County of _______________________




         I, _______________________________________________________, a Notary Public
in the State of Virginia at Large, do certify that ______________________________________,
whose name is signed to the foregoing Deed of Trust dated _________________________, has
personally appeared and acknowledged the same before me in the State and City aforesaid.
Given under my hand this ____ day of ________________, 201____.


                _______________________________________
                NOTARY PUBLIC

My commission expires:______________________________________




Revised 06/01/2011                                       Appendix 42: NSP Second Deed of Trust
                                                                                             7
                                       SCHEDULE A
            (Property Description, to include Legal address and Street address)




Revised 06/01/2011                                     Appendix 42: NSP Second Deed of Trust
                                                                                           8

				
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